National Bank of Bahrain B.S.C. Reports a Net Profit of BHD 45.8 Million (USD 121.5 Million) Attributable to the Owners of the Bank for the Nine Months Ending 30 September 2021

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1. NATIONAL BANK OF BAHRAIN B .S.C. REPORTS A NET PROFIT OF BHD 45.8 MILLION (USD 121.5 MILLION) ATTRIBUTABLE TO THE OWNERS OF THE BANK FOR THE NINE MONTHS ENDING 30 SEPTEMBER 2021 Manama – 27th October 2021 – National Bank of Bahrain B.S.C. (NBB) has reported a 9.3% increase in its net profit attributable to equity shareholders to BHD 15.3 million (USD 40.6 million) for the third quarter ended 30 September 2021, compared to BHD 14.0 million (USD 37.1 million) in the same period of 2020. The increase in net profit is predominantly due to strong business fundamentals such as higher net interest income resulting from higher loan volumes and following the active repricing of the Group’s balance sheet in line with recent interest rate trends, and increased volume of fees received from debt capital market related activities. Basic and diluted earnings per share increased to 8 fils (USD 2 cents) for the third quarter of 2021 compared with 7 fils (USD 2 cents) in the same period of 2020. Total comprehensive income attributable to NBB’s equity shareholders for the quarter decreased by 45.1% to BHD 9.0 million (USD 23.9 million) compared with BHD 16.4 million (USD 43.5 million) in the same period of 2020. The decrease is predominantly attributable to the mark-to-market movements of the Bahrain Sovereign bond portfolio. Operating income increased by 14.8% in the third quarter of 2021 to BHD 38.7 million (USD 102.7 million) compared with BHD 33.7 million (USD 89.4 million) in the prior year period. The increase is largely due to higher net interest income resulting from higher loan volumes and following the active repricing of the Group’s balance sheet in line with recent interest rate trends, and increased volume of fees received from debt capital market related activities. NBB has reported a 6.3% increase in its net profit attributable to equity shareholders to BHD 45.8 million (USD 121.5 million) for the nine months ended 30 September 2021, compared to BHD 43.1 million (USD 114.3 million) in the same period of 2020. The increase was attributable to the increased cross-selling activities, effective
2. management of the investment securities book and the active repricing of the Group ’s balance sheet in line with recent interest rate trends. Basic and diluted earnings per share increased to 25 fils (USD 7 cents) during the period compared with 23 fils (USD 6 cents) in the same period of 2020. Total comprehensive income attributable to NBB’s equity shareholders for the period increased by 98.4% to BHD 36.1 million (USD 95.8 million) compared with BHD 18.2 million (USD 48.3 million) in the same period of 2020. The increase is predominantly attributable to the mark-to-market movements of the Bahrain Sovereign bond portfolio. Operating income for the period increased by 6.7% to BHD 115.5 million (USD 306.4 million) compared with BHD 108.2 million (USD 287.0 million) in the prior year period, due to the Group’s active repricing of the balance sheet in line with recent interest rate trends, and increased cross-selling and investment portfolio management activities. The Group’s total equity attributable to owners at BHD 519.2 million (USD 1,377.2 million) is in line with 31 December 2020, despite the payment of dividends in relation to 2020 being made during the period. The Group’s total assets increased by 4.3% to BHD 4,548.1 million (USD 12,063.9 million) compared to BHD 4,361.4 million (USD 11,568.7 million) recorded on 31 December 2020. The increase was attributable to higher placements and a continued strong demand for NBB loan products. Commenting on the financial results, Mr. Farouk Yousuf Khalil Al Moayyed, Chairman of NBB said: “We are very pleased with our overall financial results for the third quarter of the year, which demonstrate positive growth. Our net profits have shown an increase from the same period in 2020, and the Group’s balance sheet remains strong by showing growth since the year end. Along with the strong results, NBB has continued in the third quarter with its commitment towards implementing ESG considerations into the organisation. We have taken steps to obtain the ISO 14001 certification designed to help us reduce our environmental impact. We have also incorporated ESG methodologies into our lending and investment criteria by exploring ways of introducing ESG risk assessment into our business proposals. As part of our continued goal to spread sustainability practices across the entire organisation, the NBB Group installed solar panels in select branches, generating a combined 605,700 kWh of energy every year and saving up to 65% of power. From a retail perspective, we have introduced exclusive financing options for customers looking to purchase and install solar energy panels. NBB remains committed to investing in the growth of the
3. local economy , offering opportunities for SMEs to develop their businesses. The Bank launched a Financial Literacy Program for SMEs providing them with a series of awareness and educational sessions designed to enhance their businesses. NBB also became a proud lead partner in Mentorship Forum Middle East; the only event dedicated to mentorship in the Middle East that focuses on accelerating the development of human capital. Through our many key milestones this year, NBB was awarded ‘The Middle East’s Best Bank for Corporate Responsibility’ by the Euromoney Awards for Excellence 2021, for its significant strides to integrate ESG principles into the bank’s framework. Lastly, recognising the effective synergy and cooperation between NBB and BisB, the NBB Group won the ‘Collaboration in Resilience’ award by Business Continuity Institute Middle East Awards 2021. I am pleased to say that the NBB Group is performing well this quarter thus far, and we will continue to move forward with our growth plans to reach new levels of banking excellence.” Jean-Christophe Durand, Chief Executive Officer of NBB, added, “NBB’s financial performance during the third quarter of the year has been positive, recording a 6.3% increase in net profit attributable to the shareholders of the Bank to BHD 45.8 million compared to a net profit of BHD 43.1 million in the same period last year. Our strong positioning in the market has enabled us to expand our product and services portfolio by strengthening our partnerships, both locally and regionally, as we continue to form solid relationships to enhance our performance. We have renewed our strategic partnership with StartUp Bahrain to empower Bahrain’s ecosystem, and established a new partnership with CleanUp Bahrain to finance the ‘Green Up’ project; an endeavour that aims to promote environmental awareness and air quality enhancement. With our ongoing commitment to provide the best quality services for our customers, we introduced an alternative payment method through Apple Pay. And as part of our continued investment in the community, NBB participated in a Virtual Career Fair conducted by the University of Bahrain designed to explore the wide range of career options, training programmes and internship opportunities available. To bolster our existing sustainability initiatives, we recently launched our ‘Auto Finance’ product, offering reduced interest rates to clients who looking to purchase hybrid/electric cars in order to encourage a shift towards a more sustainable way of life. NBB was additionally recognised for its many ESG initiatives, receiving the Sustainable Finance Award 2021 from Global Finance and honoured in three categories by the International Business Magazine Awards 2021, naming the bank as the Best Transformation Bank 2021 in Bahrain, Best Sustainable Bank in Bahrain, and Banking CEO of the Year in Bahrain. And in recognition of the ongoing endeavours on our digital transformation journey, NBB has been awarded for Best Mobile Banking Application in the banking and finance category of the Business Tabloid (BT) Awards 2021. We look forward to further growth and accomplishments which come as a result of our commitment to the nation, to our people and to customer excellence.”
4. We would like to inform our shareholders that the reviewed condensed consolidated interim financial statements and the press release are available on the Bahrain Bourse website . National Bank of Bahrain B.S.C. shares are traded on Bahrain Bourse under the trading code: NBB. Ends